UK Rental Market Update June 2026: What ONS, Zoopla and Rightmove Data Really Show

UK rents are still growing but slowing sharply. The latest ONS Private Rent Index puts annual growth at 3.3 per cent to May 2026. Zoopla's June 2026 report places new-let growth at 2.1 per cent, with wages now growing at twice the rate. This is the June 2026 monthly market update for UK property investors.

Key Takeaways

• UK Rent Growth: 3.3 per cent annual to May 2026 (ONS); 2.1 per cent for new lets (Zoopla, June 2026 report).
• Wages Outpacing Rents: UK earnings growing at twice the rate of rents for the third year running, improving tenant affordability.
• Regional Spread: North East at 5.9 per cent leads all English regions; London lowest at 2.0 per cent. Regional gap remains wide.
• Mortgage Approvals: Bank of England reports 56,205 approvals in May 2026, down 14.9 per cent on April and the lowest since 2023.

The Headline: UK Rents Growing But Slowing

Two things happened simultaneously in the UK rental market this June, and both matter for investors.

First, rents are still growing — 3.3 per cent annually per ONS, 2.1 per cent for new lets per Zoopla. Second, the pace of growth has clearly cooled from the double-digit peaks of 2022 and 2023. The market is not falling. It is rebalancing, and doing so faster than most forecasts predicted.

For a property investor building forward yield assumptions in July 2026, that means a base case of roughly 2 to 3 per cent annual rent growth for the coming year, per Zoopla's own forecast, rather than the 8 to 12 per cent seen in recent memory. That has real implications for how you model refinancing, mortgage coverage ratios, and long-term returns.

ONS Private Rent Index: The Official Numbers

The ONS Private Rent Index for May 2026 is the current gold-standard reference, released in mid-June. Headline figures:

• UK annual rent inflation: 3.3 per cent
• Average UK private rent: £1,383 per month
• England: 3.3 per cent
• Scotland, Wales, Northern Ireland tracked separately but broadly in line

The May figure was lower than April's 3.5 per cent, continuing a gradual deceleration seen since late 2025. If the trajectory holds, the June ONS release (due mid-July) is likely to show a further slight decline. This blog will be updated when that data lands.

Zoopla's June 2026 Report: The Big Picture

Zoopla's rental market coverage is complementary to ONS. Where ONS tracks all rental stock, Zoopla measures rents on new tenancies — the leading edge of the market.

Zoopla's June 2026 report puts new-let rental inflation at 2.1 per cent, and specifically observes:

• UK average new-let rent: £1,321 per month
• Average earnings growing at twice the rate of rents, third year running
• Zoopla forecast for full-year 2026: 2 to 3 per cent rental inflation

The affordability story is arguably the most important shift. For most of the post-2020 period, rents grew faster than wages, straining tenant budgets and driving political pressure for rent controls. That has now reversed. For landlords, the calmer affordability picture reduces political and regulatory risk on future rent rises.

Regional Rental Growth: North Still Leads

ONS regional data for the 12 months to May 2026 shows the North-South rental growth gap is still wide, though narrowing.

• North East: 5.9 per cent annual growth (down from 6.5 per cent in April). Highest of any English region.
• London: 2.0 per cent annual growth. Lowest of any English region.
• Average rent London: £2,294 per month — highest in the UK
• Average rent North East: £776 per month — lowest in the UK

That North-South regional dynamic has been the defining story of the UK rental market for three years, and the June data suggests it will continue through the rest of 2026. Northern regions have lower rent bases (giving more room to grow proportionally), stronger recent economic momentum, and less exposure to the London affordability ceiling. The pattern strengthens rather than weakens the case for Northern-focused BTL portfolios, which is the underlying investment thesis we have been mapping since our North-South gap analysis.

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Tenant Demand and Mortgage Approvals

Tenant demand is cooling. Rightmove reports the average rental home now receives around 8 enquiries, down from 11 a year ago and 29 at the 2022 peak. Zoopla's measurement is lower at 5.6 enquiries in May 2026 (different methodology), but the direction is the same.

What this means practically: rental listings are moving less fast, tenants have more choice, and asking rents are being reduced more often. Rightmove tracks that 26 per cent of rental listings are now reduced in price at some point during marketing — the highest proportion since Rightmove began tracking this metric in 2012.

Mortgage approvals are also falling. The Bank of England reported 56,205 mortgage approvals in May 2026, down 14.9 per cent on April and the lowest monthly figure since 2023. That points to softer purchase demand in the coming months, which historically feeds through to slower price growth. Combined with the rental cooling, the mid-2026 picture is a UK market that is easing pressure across the board — not a market in decline, but a market normalising.

What This Means for Property Investors

Four takeaways from June 2026's data for anyone with capital allocated to UK residential property.

First, revise forward rent growth assumptions to 2 to 3 per cent, not the double-digits of recent memory. Model this into refinancing and yield calculations.

Second, tenant affordability is materially improving with wages outpacing rents for the third year. That reduces political pressure for rent caps and improves the sustainability of your gross rent assumptions.

Third, the Northern regional advantage remains intact. Lower rent bases, stronger regional economics, and less exposure to affordability ceilings all still favour the North.

Fourth, the mortgage approvals slowdown is a signal to watch. A sustained decline typically eases upward price pressure by 6 to 9 months, opening negotiation space for well-prepared buyers.

The Bottom Line

The June 2026 rental picture is not the boom-time story of 2022-23, and it is not a slump either. UK rents are still growing, but at rates that finally sit below wage growth for the third year running. The Northern regional advantage remains intact. Mortgage approvals are softening. For property investors, this is a normalising market — the kind that rewards fundamentals-based decision-making over momentum plays. We will refresh this update each month as new ONS, Zoopla, Rightmove and Bank of England data lands.

Data cited in this article is from ONS Private Rent Index (May 2026 release, mid-June 2026), Zoopla Rental Market Report (June 2026 release), Rightmove Rental Price Tracker (Q1 2026 release), and the Bank of England Money and Credit statistics (May 2026 release, early July 2026).